Keep Watching Bonds
Gary Kaltbaum is an investment advisor
with over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
The Investors Edge. Mr. Kaltbaum is
also the host of the nationally syndicated radio show “Investors Edge” on over
50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s
Trendwatch”…a weekly and monthly technical analysis research report for the
institutional investor. If you would like a free trial to Gary’s Daily Market
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Watch the BOND MARKET…the BOND MARKET…the
BOND MARKET…the BOND MARKET…the BOND MARKET. I think 5 times mentioned is
good enough.
I have absolutely no idea what effect higher
long-term rates will have but I am not sure it will ultimately play out in a
positive way. I will continue to use price and volume in the market to guide me
but watch the BOND MARKET. LONG-TERM yields have been and continue to head
higher…and as I said in my last report, that could provide headwinds for
equities. Markets are overdue and this could be the excuse.
This report told you that if the TLT broke below
$86.60, that would turn me longer-term bearish for BONDS…and that is exactly
what has occured. Will be watching the BOND MARKET.
I do not like the pattern of the DOW/S&P here as
5/21,22,23 action shows churning as the market stalls. 5/24 shows a bad reversal
distribution day. Then we get a reversal to the downside on volume 5/31. We get
another distribution day on 6/5 and we get yesterday.
I make note of some DOW names that are now
starting to top. A close look at IBM shows high volume work to the downside
yesterday as it puts in a near-term top. Odds favor, the DOW has now lost IBM as
help. I am seeing a bunch of other names in the DOW that are starting to look
like this.
Maybe this is just a normal correction…probably
is. First near-term support on the DOW is 13,423…after that…13,212. On the
S&P, 1505 and then 1491. A break below those levels turns an itty bitty
correction into something a wee bit more meaningful.
BUT…lastly, as I said in my last report,
leaders are working. I would continue to watch names like AAPL, CROX, AMZN, FWLT,
MA, BGC, RIMM as well as others. until leading stocks break, I don’t think any
correction becomes meaningful. I will be paying close, close attention to them.
My next report: I will be blasting the regulators
for sleeping on the job as the crooks on Wall Street continue to float B.S.
buyout rumors on every company on Wall Street.
Gary Kaltbaum